TelecityGroup whitepaper: Colocation in Europe

Transcription

1 Colocation in Europe This whitepaper explores the criteria that organizations should evaluate when looking for a colocation partner in Europe, and provides a due diligence checklist to assess if the partner meets current as well as future needs. It is targeted at CIOs, CTOs, IT Directors and any other person looking for information on the topic. 1. Executive summary The growth of the digital economy means Information Technology (IT) is now at the heart of business. IT has become a business enabler, fostering the agility and flexibility required for an organization to drive innovation and expansion. For this reason, the infrastructure that supports IT has become increasingly vital. To achieve the highly secure and resilient colocation environments that are necessary to meet these modern business requirements, many organizations are outsourcing all or part of their technical, web and IT infrastructure to expert third-party data center providers. When choosing a colocation partner in Europe, it is important to find a company you can trust that offers a secure and reliable environment for your business-critical infrastructure. They must be able to provide a network of data centers located in primary positions for connectivity and power, as well as expansion plans to meets your on-going business growth requirements. In addition they must have the financial stability to support this type of growth. This whitepaper explores the criteria that organizations should evaluate when looking for a colocation partner in Europe, and provides a due diligence checklist to assess if the partner meets current as well as future needs. It is targeted at CIOs, CTOs, IT Directors and any other person looking for information on the topic.

2 Colocation in Europe Companies should look for colocation partners that can demonstrate expansion plans in the key European hubs, providing the assurance that their growth plans can be accommodated into the future with premium data center capacity. 2. What should you look for in a European colocation provider? 2.1 Connectivity Online content, services and data that is in anyway latency-critical have a requirement to be physically located as close as possible to the networks which are going to deliver it to the enduser. Those applications that utilize a wide range of telecommunication carriers, both fixed and mobile, also need to be physically housed in carrier-neutral environments. The data center should act as thriving, connected, digital ecosystem with direct access to international and local fixed line, broadband and mobile networks, internet exchange points, content distribution networks, trading platforms and cloud hubs. These hubs will facilitate the secure storage, sharing, and distribution of mission critical applications, data, content and media. Internet exchanges Internet Exhanges (IXPs) form an essential part of the global internet infrastructure. They are the physical infrastructure whereby Internet Service Providers (ISPs) exchange internet traffic between their networks. They allow competing networks to interconnect and exchange Internet traffic at a national and international level with speed and efficiency at a significant reduction to transit costs. The result is an overall reduction of traffic that has to be delivered upstream, therefore reducing the cost for enterprises and service providers. In Europe, the largest Internet Exchanges are far larger and exchange more traffic than those in the USA. The largest US IXP for example, the New York International Internet exchange, handles an average throughput of 93Gb/s whereas the German Internet Exchange handles over ten times more (945Gb/s average). The Dutch Internet Exchange (AMS-IX) and London Internet Exchange are similarly busy with average throughputs of 849Gb/s and 743Gb/s respectively. Organizations that locate their infrastructure in colocation facilities that also host IXPs on this scale will benefit from significantly increased peering and connectivity options. 2.2 Flexibility Flexibility from your colocation partner is vital. From choosing your location in the data center to selecting the power, services and support levels you require, the solution must meet the business evolving needs: Scalability The key to scalability is providing the capacity for expansion in the most highly-demanded inner-city locations in Europe. Data centers built in these locations, and to premium specifications, not only take long-term planning and skilled execution, but they are also extremely capital-intensive projects. Therefore, the availability of premium data center capacity has been restricted in recent years. Indeed, global market demand for multi-tenant data center space currently exceeds supply, and growth is forecast to continue outpacing supply through Companies should look for colocation partners that can demonstrate expansion plans in the key European hubs, providing the assurance that their growth plans can be accommodated into the future with premium data center capacity. They must ensure that the provider has the financial stability and access to capital that will support these expansion plans. Customer-focused providers When you enter into a relationship with a colocation provider, it is important you can trust them to deliver the right solution for your business needs. Choosing a customer-focused provider that can help you select the power, services and support levels you require is essential. Central to this is the quality of their employees, and their knowledge of technology and industry. Organizations should look for colocation providers that can offer engineering experts who can apply their knowledge to deliver practical advice, alongside commercial teams that can work with customers to provide solutions that create value. In this sense, providers should become trusted partners offering responsive, expert, always available hands-on support. Whether companies are planning to expand their business or offer new product launches or refreshes of technology, providers should be able to offer the advice and support needed. A data center partner should be focused on helping the organization to thrive and improve the way they do business. 1 Multi-tenant Data Center Supply Report, Tier1 Research, 2011

3 The rising cost of power and the growing focus on corporate carbon emissions from the EU and national governments is putting increasing pressure on organizations to demonstrate energy efficiency. 2.3 Transparency Energy efficiency The rising cost of power and the growing focus on corporate carbon emissions from the EU and national governments is putting increasing pressure on organizations to demonstrate energy efficiency. This has caused energy efficiency to become one of the key outsourcing considerations, and it is now a differentiator when organizations are choosing a third party data center supplier. With innovative design and state-of-the-art technology, optimized third-party data center facilities can provide a far more energy-efficient environment than can be achieved in-house. For example, free cooling systems enable significant savings when the external ambient temperatures fall below a certain level, while being able to achieve better air flow management to maintain segregation between the cooling air and the waste heat generated by IT equipment. Although many data center providers will promote their green expertise, businesses require formal and objective criteria from which they can compare and assess potential suppliers. In recent years, there have been encouraging steps in this direction, with industry-wide frameworks for driving energy efficiency being developed. One major development was in Europe in November 2008, when the EU launched its Code of Conduct for Data Centers. The Code provides businesses with a sensible, practical and applicable set of measurements to improve efficiencies, minimizing the environmental impact of data center operations as well as having a beneficial effect on the bottom line. Data center providers that have implemented the Code s best practices can demonstrate their commitment to taking tangible and achievable steps to minimize their environmental impact and, in turn, that of their customers. There are a number of other industry accreditations which provide a clear indication of a providers energy efficiency credentials. ISO is an internationally-recognized accreditation for organizations that demonstrate superior environmental management. Certification highlights a provider s ongoing commitment to both maximize the energy efficiency of its existing data center estate and develop innovative new facilities. There are also regional accreditations in this area, such as The Carbon Trust Standard in the UK, which is the world s first carbon award that requires organizations to measure, manage and reduce carbon emissions across their own operations. The certificate constitutes 50 percent of the Early Action Metric for judging performance in the CRC Energy Efficiency Scheme (formerly known as the Carbon Reduction Commitment) which started in April Security In today s global economy, cybercrime is becoming a real threat to commercial security, with many attacks perpetrated by organized criminals who have the resources to pay for high levels of hacking expertise. Indeed, a recent study estimated the global cost of cybercrime for businesses at $114 billion annually. 2 Advanced Persistent Threats are still a major concern for businesses; however recent hacktivism attacks have also become a concern as they require a different approach to security. Organizations need to have preventative measures in place, as distributed denial-of-service (DDoS) attacks can not only damage the reputation of a business but also halt trading and operations. External consultants can work with IT departments to analyze performance, security and availability requirements ensuring the right security platform is in place. Once the hardware is in place, the CIO should seek a trusted partner to develop a security policy based on best practices, and maintain it 24/7 to ensure the highest levels of security around the clock. Choosing a data center provider that can guarantee the security of your business-critical data and systems is absolutely critical in this process. Premium data centers have advanced physical security to both monitor and control visitor access both into and within the data center. Businesses should ensure providers can guarantee a permanent manned security presence at the data center, in addition to the use of multi-layered physical security such as secure perimeters, biometric checks and extensive CCTV video surveillance. 2 Norton Cybercrime Report 2011, September 2011

4 Carrier-neutral data center capacity in the city centers of Europe s financial and digital hubs is the most effective choice for enterprises looking for a resilient, highly-connected infrastructure to supports today s bandwidth-heavy digital economy. ISO and PCI DSS certification Accreditations around information security are a key indicator of a data center centre provider s security management procedures; organizations organisations should seek providers that can demonstrate compliance to the major international accreditations. The International Organization Organisation for Standardization Standardisation (ISO) , for example, is the strictest international standard in Information Security Management, and enables companies to certify the security practices they adopt within their organization. organisation. The audit process covers a broad range of fields including information integrity, confidentiality and availability. By achieving certification, data center centre providers clearly demonstrate the strict practices and procedures they have in place to protect customers critical data. Additionally, for companies that store, process or transmit customer financial data, a data center centre provider that is certified to the PCI DSS standard will help them achieve compliance themselves. Endorsed by the PCI Security Standards Council, a body founded by the world s major credit card companies, PCI DSS Accreditation is achieved by meeting twelve criteria, ranging from physical access control to network security. Achieving the highest standards Our data centers are certified to the following international standards: ISO Information Security Management. ISO 9001 Quality Management ISO Environmental Management 3. Where should you locate your infrastructure in Europe (overview of key markets): Carrier-neutral data center capacity in the city centers of Europe s financial and digital hubs is the most effective choice for enterprises looking for a resilient, highly-connected infrastructure to support today s bandwidth-heavy digital economy. There is a clear, ongoing requirement for premium colocation space in the most consistently demanded locations such as central London, Frankfurt, and Amsterdam. This is not solely because the availability of data center capacity in these most highly-demanded inner-city locations has been restricted in recent years, due to power constraints, costs and complex regulatory approvals. Indeed, according to commercial property advisors CB Richard Ellis, overall vacancy in carrier neutral data centers in the top five European markets reached a historic low of 22.8 percent in March 2011, due to a slower rate of new supply in the market, compounded with continuing demand for premium outsourced data center space. 3 Some providers have chosen to build facilities in more rural areas or in more regional locations where overhead and power constraints are lower; in the UK a variety of new facilities have been built outside the M25 in London, for example. However, the challenge with facilities in these rural and suburban areas is that they often lack the network diversity and connectivity to meet modern enterprise requirements. The presence of multiple telecommunication providers is critical to ensuring a resilient IT infrastructure, and these out-of-town facilities lack these provisions. The following section looks at Europe s most vibrant digital and connectivity hubs, which provide the ideal location to colocate infrastructure: PCI DSS Security Standards Council. 3 CB Richard Ellis, European Data Center Viewpoint, Q1 2011

5 Scandinavia enjoys one of the world s largest internet penetration rates 92.5 percent - and Stockholm acts as the epicenter of this. Amsterdam With the oldest Stock Exchange in the world, Amsterdam has long been viewed as the epicenter of continental European connectivity. It is at the center of various fiber providers networks as a well-recognized international trading hub. It is also home to the Amsterdam Internet Exchange, AMS-IX, the second largest internet exchange in the world. Dublin Following the establishment of an International Financial Services Center in 1987, Dublin became regarded as one of Europe s premier business cities, home to half of the world s top 50 banks, and half of the top 20 insurance companies. Additionally, in recent years the city has also become one of Europe s most prominent European tech hubs, housing the European headquarters for Microsoft, Google, Yahoo!, Amazon, Ebay, PayPal and Facebook among others. Frankfurt As Europe s second financial capital after London, Frankfurt is at the heart of the Eurozone, and home to some of the world s largest corporations. It is close to the European Central Bank (ECB) and the core of the European banking system. This business and financial community drives a vibrant colocation market in the city, which also benefits from extremely attractive interconnection options. The German Internet Exchange for example, DE-CIX, is Europe s largest with an average throughput of 945 Gbit/s. 4 Helsinki Helsinki is a dynamic business hub for international organizations as well as start-ups. With eighty percent of internet traffic between Moscow and Western Europe going through the city, Helsinki provides a stable and strategic location for businesses looking to access fast-growing markets in Russia and the Baltic states. The city also had a world-renowned innovation ecosystem which includes a government-funded innovation and technology agency, Tekes, which has an annual budget of 600m and a staff of 360, in addition to a venture-capital fund, Finnvera, which helps find and establish early-stage companies. London As one of the most prominent financial markets in the world, London is a major hub for internet interconnection as well as home to many of the world s major financial institutions, media and internetfocused companies. As such, central London remains the focal point of the UK data center industry. It accounts for 45 percent of racks in the British Isles, 38 percent of data center space and 48 percent of data center power consumption, indicating the significant space efficiency and power density requirements of the sector within the M25. 5 Manchester Manchester has long been regarded as an industrial hub of Great Britain; however it also has a rich history in IT innovation. Far pre-dating Silicon Valley, it was the University of Manchester which invented the first stored-program computer in 1948 and this heritage continues today. Manchester s technology and communications industry, centered in Manchester Science Park which houses the only significant UK internet exchange outside London, is made up of over 500 companies with 54,000 people directly employed by the industry and a further 60,000 people in related jobs. The emergence of MediaCityUK is further driving Manchester s role as one of Europe s emerging connectivity and technology hubs. Milan As well as being a city synonymous with fashion and culture, Milan is home to one of Europe s fastest growing technology markets. Internet usage in Italy is growing exponentially, due in no small part to the vastly improving peering and interconnecting environment for network operators and bandwidth-hungry organizations. The percentage of the Italian population using the internet has grown from 22.8 percent in 2000 to 51.7 percent in , and in November 2011 the Milan Internet Exchange, MIX, recorded a new peak traffic record of 93GB per second, up from the record 67Gbps peak in November International Telecommunication Union *Internet World Stats 4 DE-CIX. Retrieved Data Center Dynamics, Global Census: UK Market Report, November Milan Internet Exchange, November =137&lang=en

6 For any organization looking for a colocation partner it is important to find one you can trust as they are housing your business critical infrastructure. Paris In addition to its reputation as a leading city of culture, Paris has come to the fore in digital innovation in the last decade, coming in third on the Innovation Cities Top 100 Index 8. With one of the largest dedicated business districts in Europe, Paris colocation market is driven by its range of large corporations, including sizable verticals in the media and financial services sectors. Stockholm Scandinavia enjoys one of the world s largest internet penetration rates 92.5 percent and Stockholm acts as the epicenter of this. 9 The propensity of highspeed internet connections has fostered a culture of technology innovation in Stockholm, as demonstrated by being the home of innovative start-ups such as Spotify, MySQL, and Skype. Stockholm s nature as a driver of innovation was also demonstrated by it being named the European Green Capital in Outstanding data centers. Expertise you can trust. Europe s leading provider of premium carrier-neutral data centers Summary Colocation provides significant benefits for organizations of all sizes as it provides them with a secure, reliable and highly-connected environment in which they can house their IT infrastructure. It also offers organizations the benefit of specialist expertise which can help relieve pressure felt by the on-going skills shortage. However, for any organization looking for a colocation partner it is important to find one you can trust as they are housing your business critical infrastructure. Additionally they must offer the flexibility to meet your on-going business needs, whether that be offering practical advice or supporting your expansion into new territories. To help you find a trusted partner, below is a due diligence checklist to help you assess the partner to ensure they meet your current as well as on-going needs. Colocation due diligence check-list Consultative, customer-centric approach Experienced people totally focused on customer service and delivery Premium standards and engineering excellence Capacity for growth & ongoing investment in technology and maintenance Unrivalled choice of connectivity Pan-European presence in key city center locations Wide range of additional IT, connectivity and support services Value for money Environmental leadership Financial stability 8 Innovation Cities Top 100 Index 2011: City Rankings, October 18th TNS Digital Life Study, October